House rejects incentives to businesses

Saturday

Mar 11, 2017 at 3:57 PM

Zac Anderson Political Editor @zacjanderson

TALLAHASSEE — Joining together in big, bipartisan show of opposition to taxpayer support for corporations, the Florida House defied the dire warnings of Gov. Rick Scott about potential job losses and voted Friday to abolish the state’s economic development agency and numerous business incentives.

House Speaker Richard Corcoran has led an ideological blitzkrieg against business incentives, which have drawn critics in both parties who say they unfairly give advantage to some companies over others, often don’t deliver the promised jobs, frequently go to the well-connected instead of the most deserving and generally are a misuse of government funds.

“The lion’s share of the job creators in this state will work hard their entire lives, pay taxes, play by the rules and never receive one dollar of taxpayer-funded subsidies,” said Rep. Paul Renner, the GOP lawmaker who carried the legislation for Corcoran.

The bill eliminating Enterprise Florida passed the House 87-29, giving Corcoran a veto-proof majority to overturn Scott if the measure makes it to his desk and gets axed. It was a big victory for the speaker — who has engaged in months-long feud with Scott on the issue — and one that demonstrated he has tapped into an issue with deep resonance on both the right and left.

Among House Republicans who voted, 62 favored the bill, including Rep. Julio Gonzalez, R-Venice, and Rep. Jim Boyd, R-Bradenton, and 14 were against it, including Sarasota Reps. Joe Gruters and Alex Miller. Among House Democrats, 25 voted in favor and 15 were opposed.

Democratic state Rep. Carlos Guillermo Smith noted that it often was mentioned in the debate that “this is an idea where Bernie Sanders progressives can align with Ted Cruz conservatives.”

“I’ll just say that spoke to my true progressive heart,” he added.

The issue has been especially divisive for Florida Republicans, with two of the state’s most prominent GOP leaders on opposing sides. It has exposed an ideological rift with the party over the involvement of government in the private sector.

Scott strongly defends the incentive programs as a critical component of his efforts to grow and diversify the state’s economy.

“Today, politicians in the Florida House passed job-killing legislation,” Scott said in a statement after the vote, adding that lawmakers were “decimating Florida’s economic toolkit and the very programs which are directly tied to the creation of thousands of jobs for Florida families.”

Business groups such as the Florida Chamber of Commerce are ardently opposed the effort to eliminate economic incentives, making the debate particularly vexing for some business-friendly Republicans who normally are aligned with the Chamber.

The Chamber of Commerce – a major player in GOP politics - sent an “action alert” to its members Friday saying the House legislation “would end economic diversification efforts in Florida.”

GOP Rep. Jay Fant, a corporate executive from Jacksonville, said the incentives debate raised legitimate questions about the proper role of government, but for him the practical implications of generating fewer jobs for Floridians trumped the philosophical argument.

“I understand the philosophy but I fear killing this program will hurt people,” he said. “I will not be a part of this.”

The House also approved legislation reforming Visit Florida, the state’s tourism marketing agency. The bill puts new restrictions on travel and other expenses at the agency.

Visit Florida and Enterprise Florida have been the subject of unflattering news reports in recent years detailing questionable spending, the most notable example being a Visit Florida contract with the rapper Pitbull to promote the state.

Both agencies also have been criticized as lacking accountability and transparency.

The speaker could try to force Senate leaders into acting by holding Senate legislative priorities hostage, refusing to move them without action on the incentives bills.

Corcoran has indicated a willingness to take the two-month session – which kicked off Tuesday - into overtime rather than back down on key issues.

Asked Friday whether the incentives debate has a chance of gaining traction in the Senate, Corcoran said “absolutely.”

“To say on week one that a House priority where we believe firmly we’re right on the policy, we’re right on the principle doesn’t have life in the Senate is not remotely in the ballpark of true,” he said.